18 Apr 2012
By Forrest Jones
Star Wall Street analyst Meredith Whitney is reversing the one call that made her famous in 2007 — she’s upgrading her recommendation on Citigroup, a sign the financial crisis and overall economic weakness could finally be a thing of the past.
Whitney notched up her Citigroup recommendation to hold from underperform, CNBC reports
In 2007, Whitney predicted the subprime mortgage mess would force the bank to cut its dividend to raise capital, making a spot-on call that gave her rock-star status among equity analysts after initially receiving heat for making the prediction.
“C shares continue to trade well below tangible book value (70 percent), despite relatively lower mortgage and European exposures than its large-cap bank brethren,” Whitney, who founded Meredith Whitney Advisory Group in 2009 after leaving Oppenheimer & Co., writes in a note.
Market observers welcomed the call.